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Contents PRIMARY AGENT MAGAZINE
How to make the right hiring decision
20
Hiring can be a nerve-wracking — and expensive — proposition. Here, staff from Mosteller & Associates, IA&B’s contracted human resources consulting firm, offer expert answers to 10 common recruiting questions. The end goal? Efficient, cost-effective and successful hiring.
Page 12
Building a culture through recruiting and retention Prioritizing and understanding your agency’s culture can pay dividends — think: smarter hiring and a satisfied workforce. In this article, Dave Coons looks at the role of culture in recruitment and retention.
Page 20
Mission Statement Primary Agent delivers ideas to help Insurance Agents & Brokers’ members negotiate their unique position as guardians of trust between insurance consumers and companies while facing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission to preserve and advocate the American Agency System.
Get social with IA&B
In every issue 2 3 4 6 8 10
Chair of the Board’s Message Member FAQ State News Preventing E&O Coverage Corner Tools You Can Use
11 19 24 28 28 28
Glance at Events IA&B Partners Technology Update Advertisers Index Classified Ads Last & Least
Subscriptions: Non-member price: $2.25 per copy or $15 per year. All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two months prior to publication. Advertising rates furnished upon request. Address inquiries to: Primary Agent Editor 5050 Ritter Road Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office. Postmaster: Send address changes to above address. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-7 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.
Copyright 2012. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.
Board of Directors
Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P
Officers Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Chair of the Board West Chester, Pa. Norman F. Basso, CPCU Vice Chair of the Board York, Pa.
Chair of the Board’s M
E
S
S
A
G
David Rosenkilde, CIC Immediate Past Chair of the Board Reisterstown, Md.
Members
Working hard to make it easier
Joyce M. Bailey, CIC, CRM, CPIW Newark, Del.
Tired of hearing about the firming market? Then let’s take a moment and focus on the repercussions. If you’ve been in the business for a while, you know that market changes, for one reason or another, often bring employment changes.
Henry “Butch” Bradley, Jr. Forest Hill, Md. Timothy P. Burris Mifflintown, Pa.
Enter your agents’ association — poised to serve as an extension of your staff, even when (or maybe, especially when) your own staff is undergoing changes.
N. Lee Dotson, CIC, AAI Wilmington, Del. Michael P. ErtelI Columbia, Md.
Take IA&B’s employee management tools, for example. There’s HR Solution (read more on page 10), the countless resources stored on www.iabgroup.com (including the Producer Agreement Toolkit), and even the articles in this month’s Primary Agent magazine.
John L. Frankenfield Telford, Pa. G. Greg Gunn, CIC Lemoyne, Pa. John B. Hollister Milford, Pa. Diana M. Hornung Hanby, ACSR Wilmington, Del. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.
I encourage you to take advantage of the resources available to you through your IA&B membership. It’s never going to be easy to run an agency, but your association is working hard to make it easier.
+
Robert S. Klinger, LUTCF, CPIA Germantown, Md. Douglas A. Loesel, CPCU Erie, Pa.
Best,
Michael F. McGroarty Sr. Pittsburgh, Pa. Craig S. Mader Gambrills, Md. Ann Gallen Moll, CIC Reading, Pa.
Robert B Hall, ChFC, CLU, CPCU, ARM, ARM-P Chairman of the Board
April E. Ressler, CIC Altoona, Pa. Scott C. Rogers, CPIA* York, Pa. David B. Wasson Sr., CIC State College, Pa. Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.
* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director
Driving members to distinction. [2]
E
Member FAQ QUESTION: My insured is telling me that someone called him and told him that they could save him money by improving his experience mod. How can they claim that? ANSWER: An experience modification factor, “a mod,” is not modifiable at will. However, it is becoming more and more common for insurance outfits with a specialty in Workers’ Compensation insurance to claim that they will improve the client’s experience modifier. As misleading as it may sound, after discussion with the client and access to their information, those outfits scrutinize the worksheet and often find either errors or, more likely, simply a delay in closing claims or adjusting reserves, having a direct impact on the experience mod. Of course, the ability to change the mod immediately or have to wait until the next renewal depends on when the “error” is discovered, but even if the mod cannot be corrected immediately, the client’s trust in your agency could be shaken, and you could end up losing the account. More often than not, the issue stems from the valuation date. The valuation date is the date at which time the loss history (including claim reserves) is “frozen” for purposes of calculating the mod. Past the valuation date, any reduction in the reserve will have no effect on the mod. An agency’s lack of diligence in reviewing the loss history
with the carrier prior to the valuation date could become an Achilles’ heel when your competition comes knocking on your client’s door. It is essential to make sure that there are no over-reserved claims and that all claims that should be closed are in fact closed before the valuation date. This should be done for all policy years examined for the mod. It is also a good idea to ensure that staff is familiar with worksheets and how the mod is calculated (as obscure as the formula may appear). If you make it a habit to review the claims in advance of the valuation date and to discuss with the carrier any questionable open claims, you will provide better service to your clients and be less vulnerable to your competition.
DO YOU HAVE A QUESTION? Email it to us at iab@iabgroup.com. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to 717-795-8347. We look forward to answering your questions!
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State News Primary Agent | July 2012
Annual convention in review Networking opportunities, CE seminars and an insurance commissioner candidates’ forum drew over 200 independent agents, CSRs and company personnel to Rehoboth Beach June 6-7. The 55th annual DAIAB Annual Convention was a resounding success. Fun in the sun Attendees began June 6 on the networking event of their choice — a golf tournament at Kings Creek Country Club or one of three bicycle tours. The day concluded with a vendor-sponsored welcome reception, followed by the second annual seaside social. Day two kicked off with a legislative update from DAIAB’s government affairs team and an insurance commissioner candidates’ panel discussion. Attendees also chose among four CE-approved courses, taught by nationally recognized faculty members Jerry Milton and Bettye Buffington. In addition, Thursday included the annual awards luncheon, where DAIAB recognized CSRs and presented the following awards and scholarships.
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Association awards Jim Watkins, of Pfister Insurance Inc. in Dover, received the Wharton-Ranalli Leadership Award for his contributions to the association and industry. Jim recently ended his term on the DAIAB Board of Directors and as Delaware’s IIABA (the Big “I”) National Director. The William H. Lehnert Jr. Award went to Joanna “Joey” Ryder, of Selective Insurance Group, for her efforts to forge strong agency-company relationships. And former director of the DAIAB Board Denise Kozel, of Bramhall + Hitchen Insurance in Newark, received the Francis B. Gebhart Memorial Award for her continued assistance to the association. Joann Scott Memorial Scholarships DAIAB’s annual Joann Scott Memorial Scholarships went to Matthew Armistead, of Newark, and Danielle Marshall, of Middletown. Both received $1,500 to continue their education at the University of Delaware. A sincere thank you to all who attended and sponsored the convention.
Court opines: Cert did not modify terms of policy Another court decision highlights independent agents' need for caution when completing certificates of insurance. The U.S. District Court for the District of Delaware was asked to consider whether or not a certificate of insurance (COI), which was prepared and issued by an independent insurance agent, modified the terms of an underlying insurance contract, in relation to an additional insured. The additional insured argued that typewritten language added to the COI by the independent insurance agent modified the terms of the policy and that the modified coverage would require the insurer to tender a defense and indemnify the additional insured. The insurer countered the disclaimer on the COI expressly stating the COI was being issued for informational purposes only, and thus could not be relied upon as a basis for modified coverage. The court ruled that the independent insurance agent was not authorized by the insurer to change the terms of the underlying insurance policy, and, as a result, his delivery of the COI did not affect the additional insured's coverage as provided for under the policy. In spite of this positive decision, certificates continue to plague the industry and are a rising source of E&O claims. DAIAB’s legal brief: www.iabgroup.com/de/ premcor_national_fire DAIAB’s certificates resources: www.iabgroup.com/de/ certificates
Track trends in Del. independent agents' market share Learn how independent agents stack up to their competition. DAIAB's customary summary of the latest IIABA (Big “I”) market share report now is available via the link below. The document provides an in-depth comparison of various distribution channels and various lines of insurance and Delaware-specific market share data for 2010. www.iabgroup.com/de/ marketing_branding (scroll to “P&C market share” heading)
Neighboring news: Md. court bites back at pit bull owners The issue of liability for owners of pit bulls and mixed breed pit bulls, and their landlords, has taken center stage in the Old Line State thanks to the recent Maryland Court of Appeals decision in Tracey v. Solesky. The court removed the former common law standard for dog bite negligence cases, whereby it was necessary to prove (a) that the dog was known to be dangerous and (b) that the owner and/or landlord was negligent, and replaced it with a strict liability standard, which establishes that, at first bite: w Owners are liable if the plaintiff can provide proof that the dog involved in the attack was a pit bull or mixed breed pit bull.
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w Landlords also can be held liable if the plaintiff can provide proof that the dog involved in the attack was a pit bull or mixed breed pit bull and that the landlord had knowledge the tenant owned a pit bull or mixed breed pit bull. While not specifically addressed, the court's opinion has the potential to open the door for increased liability issues for those who exercise temporary custody over pit bulls or mixed breed pit bulls, including veterinarians, pet stores, groomers, kennels, pet sitters, animal shelters and rescue groups. Maryland state legislators’ offices have been flooded with calls decrying the court's opinion. In response to the public outcry and the ruling, five separate pieces of legislation designed to overturn the court’s specific-breed prohibition were introduced during the General Assembly’s late-spring special session. While none of the legislation was passed, it is anticipated it may be re-introduced during the next regular session. Review IA&B of Maryland’s legal brief: www.iabgroup.com/md/ tracey_solesky
Preventing Primary Agent | July 2012
ERRORS AND OMISSIONS
BILLING MATTERS AND ASSOCIATED PITFALLS Don’t create a duty where none previously existed PAUL E. WALTERS Paul E. Walters, E&O department claims manager for the Utica Mutual Insurance Co., supplied this article. Insurance Agents & Brokers Service Group Inc. is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your E&O coverage, contact IA&B at 800-998-9644 or iab@iabgroup.com.
An agency relies on its renewal book as a large component of its income. The book is maintained through the good service the agency provides for its customers. Some of the book may be distressed because of premium issues. As a result, some agencies help walk an account through billing issues, even on direct-billed matters, to keep the client on the books. Rather than having a policy cancelled and possibly losing the account, agencies sometimes take steps beyond duties normally associated with an agent’s role in the billing process.
While helping an insured to keep them as a client might appear to make good sense, agencies must be careful ... appear to make good sense, agencies must be careful about which accounts to help, and how communications during the process are documented. If a client continually has problems making payments to a carrier or a premium finance company, the agency may be best served to let the client’s policy cancel instead of trying to keep that client on the books.
From a legal perspective, when one acts outside of normal duties, the actions taken may create a duty that would not normally exist. This is where agencies can be vulnerable to claims made by a client – when an issue regarding policy status exists. While helping an insured to keep them as a client might
A cancelled policy, a claim, a court case The following example illustrates how an agency can be implicated when [6]
claims arise from a lack of insurance coverage resulting from a cancellation for non-payment. The agency had a client — a bar — that was habitually late in making premium payments for liquor liability coverage. The client went through premium financing. In the past, when the agency was notified of a pending cancellation from the premium finance company for the bar, the agency would intervene with the finance company to buy the client some time to make its premium payment and stave off cancellation. This occurred several times. Finally, the client was sent a cancellation notice from the finance company, a copy of which the agent claims was never received at the agency — although it had received past ones. The policy cancelled.
After the cancellation date, an intoxicated customer of the bar had a serious accident. Because the intoxicated customer’s insurance limits were not enough to pay for the injury caused by his actions, the bar was sued by the injured party, who claimed the bar should not have served any additional liquor to the person who caused the accident. Since the policy for the bar had been cancelled, the bar had no coverage. The bar owner consented to a sevenfigure judgment and, in exchange for a release, granted the injured party an assignment of rights to sue the agency for the lack of coverage, the prior limit of $1,000,000.
Except for the fact that the agency had assumed a duty in the past to help get its client’s policy reinstated, the agency would not have been liable for the bar’s lack of coverage.
The verdict entered was $600,000 — 60 percent of the intended coverage — plus more than $200,000 in prejudgment interest, for a total verdict in excess of $800,000. Except for the fact that the agency had assumed a duty in the past to help get its client’s policy reinstated, the agency would not have been liable for the bar’s lack of coverage. Be careful When a client’s business is in jeopardy because of a cancelled policy, the client will do and say whatever is necessary to keep the business viable. This includes blaming an agent for its inability to pay premiums. If an agency decides to interject itself into the billing process, all communications concerning the agent’s role in the process must be clearly documented. It is not normally an agent’s duty to get involved. Agents should be careful when interjecting themselves into the billing process. The preceding example illustrates the pitfalls associated with helping a client with a billing issue. In hindsight, taking no action would have been better than taking action and creating a duty where none previously existed.
ATLANTIC SPECIALTY LINES the “A” way — Attitude, Assistance, Adaptability
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The case against the agency was tried to conclusion. The jury found for the injured party who had the assignment from the bar. The jury stated they believed the agency knew of the impending cancellation, and, because the agency helped the bar get the policy reinstated in the past, the agency owed the client a duty to take steps to get the policy reinstated before the cancellation was final.
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Surprisingly, the jury found the agency 60 percent at fault for the cancellation and the bar 40 percent at fault for not paying the premium.
Independently Owned Reliable & Experienced Underwriters
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Coverage Primary Agent | July 2012
CORNER
EMPLOYEE OR INDEPENDENT CONTRACTOR?
JERRY M. MILTON, CIC Jerry M. Milton, CIC teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.
I just hired someone to do a job. I want to call that person an “independent contractor.” But, is that person an “independent contractor” or an “employee”? If that person is an employee, I must pay social security tax, state and federal unemployment tax and workers’ compensation premiums. And don’t forget: That employee is entitled to all employee benefits (group insurance, retirement, vacation, sick leave, etc.). The latest estimates are that I will pay an additional 48¢ for every $1 of payroll. That’s why I want to classify this new hire as an independent contractor.
On Feb. 10, 2011, Act 72 took effect in Pennsylvania. Act 72 has a narrow definition of “independent contractor.” No individual may be classified as an independent contractor unless the individual: 1. Has a written contract to perform construction services with the business or person; 2. Is free from control or direction over the performance of these services; and 3. Is customarily engaged in an independently established trade, occupation, profession or business.
What makes an individual an independent contractor is usually determined by common law, the decisions of the courts and the Fair Labor Standards Act. In addition, several states, including Pennsylvania and Maryland, have passed legislation to clarify who is an “independent contractor.”
An individual is “customarily engaged in an independently established trade, occupation, profession or business” only if: 1. The individual possesses the essential tools to perform the services independent of
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the business for which the services are performed. 2. The individual must realize a profit or suffer a loss for the project. 3. The individual must have a proprietary interest in the business. 4. The individual must have a business location separate from the business or person for whom the services are being performed. 5. The individual independently performed the same services for another person, or was available and able to independently perform these services for another person and represented that these services could be independently performed for another person.
Read more Members have access to the IA&B Producer Agreement Toolkit, which includes a section on employee classification. The state-specific resource provides guidelines for differentiating between an employee and an independent contractor, as well as a warning about recent challenges to the independent contractor status. Access is free but limited to those members designated as agency administrator in the IA&B database. www.iabgroup.com/ PAtoolkit
In Maryland, the Workplace Fraud Act of 2009 took effect on Oct. 1, 2009. This Act, also known as HB 819, defines an “independent contractor” as an individual who: 1. Performs services free from direction and control over the means and manner of providing the services, subject only to the right of the person or entity for whom services are provided to specify the desired result; 2. Furnishes the tools and equipment necessary to provide the service; 3. Operates a business that is considered inseparable from the individual for purposes of taxes, profits and liabilities: a. In which the individual: (1) Owns all of the assets and profits of the business; and (2) Has sole, unlimited personal liability for all of the debts and liabilities of the business, unless the business is organized as a single-owned corporate entity, to which sole, unlimited personal liability does not apply; and
b. For which: (1) The individual does not pay taxes for the business separately but reports business income and losses on the individual’s personal tax return; and (2) If the business is organized as a corporate entity and the individual otherwise qualifies as an exempt person under this subsection, the individual files a separate federal informational tax return for the entity as required by law; 4. Exercises complete control over the management and operations of the business; and 5. Exercises the right and opportunity on a continuing basis to perform the services of the business for multiple entities at the individual’s sole choice and discretion. Delaware Code – Section 2311 discusses contractors, subcontractors and independent contractors, but does not stipulate who is or is not an independent contractor. A recent Delaware court decision was based on a “time, manner and method” rule. If the owner maintains control over the time, manner and method of performing the work, then an employer-employee relationship exists. If I and the new hire can satisfy the Pennsylvania or Maryland statute, or I don’t exercise control of time, manner and method in Delaware, then that individual is an “independent contractor.” Now I don’t have to worry about workers’ compensation, and I’m not liable for their actions, right? Not necessarily.
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Did I have the independent contractor sign an indemnification agreement and agree to save and hold me harmless for certain losses? Did I require that independent contractor to purchase and maintain workers’ compensation and liability insurance? If that independent contractor doesn’t have workers’ compensation insurance, I’m on the hook – premiums and claims. If I don’t require the independent contractor to hold me harmless, purchase liability insurance and add me as an additional insured, I very likely will be held vicariously liable for the contractor’s actions. Have I really gained anything by using an independent contractor instead of an employee? Not much, if the contractor is uninsured or underinsured. Y’all take care!
Insure the employee relationship Decided to use the “employee,” rather than “independent contractor,” classification? Then let Jerry Milton walk you through the obligations and liabilities of hiring an employee in his fall 2012 “Employment Relationships: Are Both Sides Covered?” seminar. He will review exposures and discuss the necessary policies to address each during his tri-state tour. Registration is open. www.iabgroup.com/ Milton
Tools
YOU CAN USE
HR SOLUTION© n a small yet bustling independent agency, management often pushes HR to the back burner. And that’s a sure-fire way to land an agency in hot water. IA&B members have access to a simplified solution — HR Solution. The compilation of products and services easily allows members to build or improve their HR program.
I
Launched in 2008, the resource has been updated and refined as laws and regulations took affect, and as members and the association’s contracted HR consulting firm provided feedback.
www.iabgroup.com/HR State-specific audit
Administrative guide
Associate handbook template
Discounted professional services
Administrative tools
Consultation services
HR Solution is a free member benefit, but access is limited to those listed as agency administrators in the IA&B database. To add administrators, contact IA&B’s Member Service Center at 800-998-9644, option 0.
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Glance at Events J U LY C A L E N DA R
Date 10
Topic
Location
CISR—Commercial Casualty Course
Lancaster, Pa.
Consequences of a Property Loss Seminar
Baltimore, Md.
11
Consequences of a Property Loss Seminar
Newark, Del.
17
CISR—Commercial Casualty Course
Altoona, Pa.
17-19
P&C Licensing Study Course
Pittsburgh, Pa.
18
William T. Hold Seminar
Frederick, Md.
18-19
James K. Ruble Graduate Seminar
Allentown, Pa.
19
William T. Hold Seminar
Newark, Del.
24
CISR—Commercial Casualty Course
Salisbury, Md.
CISR—Agency Operations Course
Wilkes-Barre, Pa.
CISR—Commercial Casualty Course
Baltimore, Md.
CISR—Agency Operations Course
Reading, Pa.
CISR—Commercial Casualty Course
Pittsburgh, Pa.
25
31
Jerry Milton Seminar Series The Consequences of a Property Loss The “consequential” losses in a covered property claim come in a variety of forms and may or may not be covered by policy endorsements. In this seminar, Jerry sorts it all out through his vast knowledge of coverages and his unique ability to offer anecdotes that make it more meaningful for the class. Dates/Locations July 10 Baltimore, Md. July 11 Newark, Del.
August 1 August 15 August 21
Allentown, Pa. Philadelphia, Pa. Pittsburgh, Pa.
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Read more at iabgroup.com/Milton
AGENCY MANAGEMENT
How to make the right hiring decision Q&A with a recruiter
Hiring can be a nerve-wracking — and expensive — proposition. Here, staff from Mosteller & Associates, IA&B’s contracted human resources consulting firm, offer expert answers to 10 common recruiting questions. The end goal? Efficient, cost-effective and successful hires.
Primary Agent | July 2012
H
iring a new member to join your agency can be a stressful experience. Will I find someone that has the skills I need? Will the new employee fit in with the others in the office? Have I learned enough about the candidate to make a sound choice?
The recruiting and hiring process is similar to any developing relationship. The goal is finding someone that brings the right mix of skills, abilities and friendliness to your agency to make the work relationship prosperous and worthwhile. I had the opportunity to interview one of our associates at Mosteller & Associates, Ron Bolam, who specializes in recruiting for senior management and executive positions. Ron shared the techniques, challenges and changes in recruiting over his 20-year career.
Jeff Gerhart: How do you know what you’re looking for in a candidate? Ron Bolam: It’s important to identify the essential functions of the position, whether or not you have a job description. You should articulate the primary functions to clarify the role and to define the qualities of the candidate, including education and skill set, needed for the job.
U.S. News Best Jobs 2012 #27: insurance agent “The Bureau of Labor Statistics projects insurance agent employment growth of 21.9 percent between 2010 and 2020. That’s an addition of 90,200 new jobs and 94,200 replacement jobs. There were 411,500 insurance agent jobs in 2010. Demand for these positions is directly linked with population and economic growth. As the commercial and consumer markets continue recovering from the recession, expanded opportunities for insurance agents will appear.” Source: money.usnews.com/careers/ best-jobs/insurance-agent
The hard part is defining for the candidate what would be a good fit for the culture of your agency. You should build your interview questions around the profile of the job and vary the questions based on the position. You should decide how much or what type of information about the agency will be shared with the candidate. Will you reveal any financial data, future plans for growth, opportunities for advancement or history of the agency?
JG: What sources do you access to find candidates? What’s one of the best resources, or does it depend on the position being recruited? RB: Recruiting needs to target specific markets for different positions. Some jobs are best advertised in local newspapers; other positions produce more candidates if posted on CareerBuilder or Monster. However, LinkedIn seems to provide great access to potential candidate pools, especially among professional-level candidates. By building accurate search criteria and sending your need, you can gain access to groups of employees that share similar traits or work experiences. Of course, face-to-face networking still provides valuable access to qualified applicants. While one method may work better in certain circumstances, sound recruiting requires that all access methods be used and engaged.
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Are you LinkedIn? Join IA&B’s LinkedIn group to expand your network online. www.iabgroup.com/soc_media
AGENCY MANAGEMENT
candidate to the next level of interviews. You should verify the candidate’s work history, account for any gaps in employment, examine the reasons why the candidate left previous jobs and gauge their educational background, degrees and acquired skills. Some organizations use a proprietary interview questionnaire that helps identify value and ethical characteristics of candidates at this stage.
JG: What steps can be taken to narrow the number of candidates?
Employee assessment services Profiling services can prove useful with new hires, internal promotions, teambuilding and even agency perpetuation. IA&B members enjoy discounted access to assessment services. www.iabgroup.com/pa/ hiring_managing/profiling www.iabgroup.com/md/ hiring_managing/profiling www.iabgroup.com/de/ hiring_managing/profiling
RB: Utilizing sound behavioral testing … [see sidebar for IA&B-member discounts on employee assessment services] can enhance the recruiting process. Other tests are available in the market as well, but the tests used should focus on the type of position being recruited. Generally, the higher the level of responsibility, the more benefit behavioral testing would provide. As well, background and credit checks can contribute to improving your selection.
The next level of interview should be in person and focus on behaviors. Asking open-ended questions around ethics, personal challenges on the job and how they were overcome, management style and conflict resolution can reveal important information about the candidate’s fit into your agency. Key to this is watching body language, eye contact and how questions may be rephrased that can give insight into the candidate. You should explore the candidate’s strengths as well as developmental areas that are important to him or her and to your agency. Avoid accepting yes or no answers; take the time to dig deeper.
[Note: Federal law (VCCLEA) prevents those convicted of a certain felonies from working in the industry without written permission from the state Insurance Department. This necessitates background checks. Members can read more on the requirement and how to comply by visiting www.iabgroup.com and selecting Agency Operations and then Employee Management. From there, resources are available by clicking the Background Checks quick link.]
JG: Are there key types of questions to ask?
JG: Are there certain people I should contact for a reference check?
RB: Much of your applicant screening can occur over the phone if you prefer. This is where a standardized list of questions can help you decide whether to move the
RB: Talk to prior managers, peers and subordinates to the extent that you can. You
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Primary Agent | July 2012
want to hear perspectives from differing viewpoints in order to get a more complete picture of the candidate. It will help validate the information you have learned from the candidate. Personal references should be avoided, unless the candidate has no significant work experience in his or her background.
JG: What do you recommend employers do to improve their recruiting and hiring? RB: Train interviewers in behavioral-based interview techniques. It is an investment that can pay great dividends in improving your hiring decisions. It can also be beneficial to have two agency members participate in a face-to-face interview; one to ask questions and engage the candidate, the other to record information and observe the candidate’s response. This dual method of interviewing helps others in your agency to learn or improve interviewing skills. Plan who will ask which questions if two or more employees or managers are to interview the candidate. Without planning, multiple interviewers may ask similar questions, and the candidate may walk away from the interview wondering what value was gained. Prior planning helps you decide who will focus on what questions, and the experience will reveal more information about the candidate, and the candidate will benefit by learning more about your agency.
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“Treat candidates as though they are potential customers. Returning their phone calls if they check on their status keeps them engaged, even if you decide not to offer the position to them.” Conduct de-briefing sessions with the other interviewers. It helps to consolidate information, to determine whether the candidate remains viable, and to
identify information gaps that may require follow-up with the candidate. Treat candidates as though they are potential customers. Returning their phone calls if they check on their status keeps them engaged, even if you decide not to offer the position to them. After all, they may walk into your agency later and ask for insurance coverage or refer someone to you. It can help differentiate you from your competitors if former candidates speak positively about their experience with you.
At Harford Mutual, we’re committed to being here for our independent agents and policyholders. Accessible. Experienced. Accountable. Responsive. That’s Harford Mutual. That’s what mutual success is all about. Learn more about opportunities for mutual success with Harford Mutual at harfordmutual.com.
AGENCY MANAGEMENT
Get reacquainted with HR Solution© HR Solution is a comprehensive collection of human resources products and services, designed exclusively for IA&B members. The tools help agencies to establish or improve their human resources program. Components include: w A state-specific audit to determine current compliance and future priorities w A customizable employee handbook w An administrative guide and tools to help agency management implement policies w Access to services and discounts from Mosteller & Associates, IA&B’s contracted HR consulting firm Access to HR Solution is free but available only to members listed as agency administrators in IA&B’s database. (Additional administrators can by added by contacting IA&B’s Member Service Center at 800-998-9644, option 0.) www.iabgroup.com/HR
Maintain a robust website that facilitates recruiting. Is information about your company easy to view? Do you have a career section that allows for direct submission of an application? You should design a process that makes it easy and fluid for a candidate to apply.
JG: What should I do after the job offer is accepted? Are there any risks? RB: The recruiting process does not stop after an offer is made. There are a number of challenges that may thwart your hiring efforts if you stop being engaged with your candidate. If the candidate is currently employed, the employer may exert pressure to entice him or her to stay: offering better pay or a promotion that was stalled, a different reporting relationship or more flexibility of schedule, or addressing a personal need. You should consider whether you have the ability to counter a later rejection of your offer by the candidate, or if you have sufficient talent in your candidate pool that you can move to your next choice.
JG: Are there any talented candidates in the workforce I may overlook? RB: Yes, those who are out of work through no fault of their own. With unemployment reaching some of the highest levels in recent years, there are many experienced, high-performing individuals who had no control over their employer’s financial position. Yet, there may be perceptions among hiring managers that these candidates were somehow responsible for their job loss. This is where utilizing sound interview
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Primary Agent | July 2012
JG: How can HR Solution© help? RB: Resources are available through IA&B’s HR Solution to help facilitate your hiring process. In addition to employment assessments discounted through your IA&B membership, you can access the HR Solution Administrative Guide which contains guidelines, forms and suggestions for conducting interviews, screening and reference checks, and for writing offer letters of employment. _________________________________________________
“Recruiting has become more competitive. Candidates are better prepared for interviewing, and managers need to do a better job of screening for talent.” techniques and background checks can vet potential candidates and remove unintended hiring biases from your agency.
JG: What has changed in recruiting over the past 10 to 15 years?
Jeffrey W. Gerhart, CEBS, MBA, provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm. IA&B members have access to HR Solution©, a compilation of products and services to help them establish or improve their human resources program. Included are base-level consultation services and discounted professional services from Mosteller & Associates. Learn more at www.iabgroup.com/hr.
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RB: Recruiting has become more competitive. Candidates are better prepared for interviewing, and managers need to do a better job of screening for talent. It has become harder to find good candidates. There must be incentive or a value proposition for candidates to change jobs. Said differently, employers must answer: How will working for the new agency improve my standing over my current employer?
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Social media is becoming a bigger part of the recruiting process. As mentioned earlier, LinkedIn provides a valuable resource for recruiting, as do Facebook and Twitter. Generally, those candidates who are more adept at accessing social media are more willing to and can respond more quickly to job openings in those media than via more traditional methods.
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And candidates appear to no longer have as strong of a loyalty to employers and are willing to consider employment opportunities as they become aware of them.
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Platinum Profile Insurance Agents & Brokers proudly recognizes Mutual Benefit Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.
FEATURED PARTNER Mutual Benefit Group CHIEF EXECUTIVE OFFICER Steven C. Sliver, President and CEO COMPANY LOCATION Huntingdon, Pennsylvania A.M. BEST RATING “A-” (Excellent) WEB SITE www.mutualbenefitgroup.com Mutual Benefit’s Senior Marketing Representatives Larry Kiser (left) and Todd Heisey live and work in the territories they serve, bringing a high level of knowledge and service to the agents they support.
J
ust before noon on Sept. 29, 2010, flames shot through the roof of the historic Gage Mansion in Huntingdon, Pa. The property houses two businesses owned and operated by Ann Marie “Annie” Wishard, and both are insured by Mutual Benefit. Mutual Benefit Group’s assistant vice president of commercial lines, Beverly Skopic, was on her way to lunch at the time the fire broke out. “I was walking by when I felt a wave of extreme heat and saw the windows explode from the building’s third-story turret.” Beverly, who for 30 years has helped manage the very department that currently provides insurance coverage for the Gage Mansion, found herself in a position to help her customer in a way she had never imagined...she was one of the first to call 9-1-1 to report the fire. Minutes later, Mike Snare, a multiline claims supervisor with Mutual Benefit, left his desk a block away and hurried to the site. As Annie put it, “Mike stood beside me from the moment we watched the building burn to the moment we opened our doors to the community for a tour of the 16-room restoration. Through it all, Mutual
Benefit and my insurance agent (Central Insurers Group, State College, Pa.) treated me like family.” Annie’s story illustrates the powerful benefit that comes from dealing with a strong, caring regional insurance company and an experienced neighborhood independent insurance agent. Mutual insurance companies like Mutual Benefit and the independent agents who represent them have been part of many communities for generations. Such companies and agents really are friends and neighbors and often are indeed literally just around the corner when crisis strikes. Agents who have qualified for Mutual Benefit’s Inner Circle agency recognition over the years maintain that insurance is a relationship business, and that they owe their success to solid relationships with their clients and carriers. Commented one agent, such success is made easier with an “excellent” company like Mutual Benefit: “Mutual Benefit is a company you can still talk to. Unlike many national and regional carriers, Mutual Benefit still underwrites by looking at the features of the individual risk, rather than seeing it
merely as part of a generic class. And it’s a company that makes it very easy to do business while providing top service.” Remarked another: “We represent eight carriers in our office, and right now, MBG is a leading company. That’s largely due to relationship. We appreciate our local representative, Patrick Bangs, and have worked with many of the same underwriters year after year. MBG is a company where I can speak directly with top management.” Bangs, who has served as Mutual Benefit Group’s vice president of field operations since 2001, remarks, “In these ever-changing times, Mutual Benefit Group remains committed to the independent agency system. To that end, the independent agent is our sole distribution source. Our field staff live and work in the territories served, enabling in-depth knowledge and a high level of service to agents on a consistent basis. At MBG, nothing happens until a sale is made — those sales are made by our agents. For now and in the future, the entire MBG staff is dedicated to making production for our company a positive and profitable experience.”
Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers. Thank you for your continued sponsorship.
WHAT IS IA&B PARTNERS? The IA&B Partners program gives company and allied businesses the opportunity to demonstrate their commitment of support to independent agents and receive maximum market exposure. As an IA&B Partner, you will also realize the benefits of IA&B membership to help you succeed in the insurance industry.
DO YOU SEE YOUR NAME? To become an IA&B Partner, choose the sponsorship package that matches your commitment of support. Contact the Member Sales Center at 800-998-9644, 717-795-9100 or visit us online at www.iabgroup.com to get started.
PLATINUM LEVEL
BRONZE LEVEL
ACUITY Berkley Mid-Atlantic Group Donegal Insurance Group Erie Insurance Group Harleysville Insurance Highmark Casualty Insurance Co Insurance Agents & Brokers Service Group Inc
Aegis Security Insurance Co
MMG Insurance Company Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Ohio Casualty Penn National Insurance Selective Swiss Re The Main Street America Group Utica National Insurance Group
Encompass Insurance
GOLD LEVEL
Lebanon Valley Insurance Company
Progressive Westfield Insurance
Merchants Insurance Group
Agency Insurance Company AmWINS Program Underwriters Inc Auto-Owners Insurance Company Briar Creek Mutual Insurance Company Builders Insurance Group Chubb Group of Insurance Companies Countryway Insurance Company First General Services Foremost Insurance Group Goodville Mutual Casualty Company Guard Insurance Group Harford Mutual Insurance Co Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc Insurance House Insurance Placement Facility of PA Keystone Insurers Group Inc Mercer Insurance Group Mercury Casualty Penn PRIME Municipal Insurance
SILVER LEVEL Access Insurance Company Allied Insurance American Mining Insurance Co Cumberland Insurance Group Frederick Mutual Insurance Co Juniata Mutual Insurance Co PSBA Insurance Trust The Philadelphia Contributionship
Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Motorists Insurance Group The Mutual Service Office Inc Travelers Tuscarora Wayne Insurance Company Zenith Insurance Primary Agent July 2012
AGENCY MANAGEMENT
Building a culture through recruiting and retention
Prioritizing and understanding your agencyâ&#x20AC;&#x2122;s culture can pay dividends â&#x20AC;&#x201D; think: smarter hiring and a satisfied workforce. On the following pages, Dave Coons looks at the role of culture in recruitment and retention.
Primary Agent | July 2012
TT
he estimated cost of disengaged workers is a startling $300 billion in lost productivity annually¹. Fierce competition necessitates a motivated, engaged workforce; and savvy organizations know that the difference lies in a strong, positive company culture.
Company culture can dramatically influence an organization’s success or lack thereof. In fact, studies have shown that organizations with adaptive cultures that are aligned with their business goals outperform their competitors by up to 200 percent. Moreover, companies that foster an environment in line with their cultural goals boast turn-over rates up to 30 percent lower than their peers. While company culture is undoubtedly crucial to an organization’s success, it is often not given the attention it deserves. Employer and employee interactions at all stages — from recruitment and on boarding through retention — play critical roles in the development and evolution of a company’s culture.
Define company culture Company culture provides a foundation for the values that employees are expected to emulate and helps define the norms for accepted behavior within an organization. Perhaps the best indicators of company culture are its current workforce and team dynamics. This includes all of the unspoken rules regarding how people interact and how business gets done. Company culture does not mean everyone acts the same. Diverse opinions, communication styles and personalities collaborating to achieve one common goal are what contribute to an effective and successful business environment. Employees learn and evolve by working together. The outcome of which is an organization’s unique company culture. To inspire change to the existing culture, a good place to start is by revisiting the organization’s core values and mission and vision statements. Core values should serve as guidelines for proper office etiquette and work ethic. A clear mission statement should set forth a common goal, while the vision lays out a means for achieving that goal. The organization’s mission, vision and values must be woven into the strategic decision-making process, and its management team must lead by example. Other factors that contribute to company culture include management styles, compensation and benefit packages, and reward and motivation programs.
¹ Gallup Management Journal. (2003) Study on Engagement
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While a candidate’s knowledge, experience and abilities are important, the cultural
compatibility should also be a focus during the
recruitment process….
AGENCY MANAGEMENT
Recruit for culture fit According to a study by the Saratoga Institute, nearly one in three newly hired employees leaves voluntarily or involuntarily before the end of his/her first year. These ill-conceived matches cost companies an estimated 50 percent to 150 percent of the positions’ annual salaries. While a candidate’s knowledge, experience and abilities are important, the cultural compatibility should also be a focus during the recruitment process from the initial attraction of applicants through the interview process and eventually the job offer. Employers must look for a balance between the skills necessary for the position and how that person will fit in with the existing team. Culture fit is equally important to potential candidates. According to Monster.com, college students would accept an average of seven percent less starting pay to work for companies with cultures they value and appreciate. Re-evaluate job ads and position descriptions. Do they describe company culture, including working environment and company values? An effective description of a company’s culture will help attract ideal candidates, while deterring candidates who might not be a good fit. The interview stage is crucial in determining whether or not
a potential employee is the right fit for the organization. The behavioral interview method is a good tool for uncovering past behavior and predicting future behavior. Many employers have established structured interview procedures to help determine if candidates possess core competencies. Core values should be integrated into each position’s “must haves.” Compose interview questions that draw out values and characteristics that are important to the organization.
Companies must place a strong focus on retention, and tactics should reflect the company’s values and the type of work environment it wishes to create.
The interview setting is also an opportunity to get a sense for candidates’ demeanors, including how they interact with co-workers. Peer interviews are an excellent opportunity to assess culture fit. Often candidates feel less stress during peer interviews and their personalities are more easily discernible. Employees that are invited to participate in this process should be company role
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models. While the peer interview should not be the deciding factor, it offers key insights that the hiring manager should consider and that may play an important role in the team’s dynamic.
Reinforce values through training Many factors play into the development of a desirable company culture, but a successful on-boarding process is one of the most influential. More than 75 percent of top-performing companies have a formal on-boarding process in place for new hires. Implementing a formal process ensures that information is shared consistently throughout the company. All employees should have a clear understanding of the company’s mission, goals and expectations from day one. Engage current employees in the process. This will help new hires feel more connected with the organization, while also reinforcing important cultural values with existing staff. It is also important to understand each employee’s career goals and create individual development plans. By giving employees ownership of the process, they will have a greater sense of their purpose. As they continue to advance, they will develop a deeper understanding of the role core values play in the organization’s success.
Primary Agent | July 2012
Strengthen culture through retention A good gauge of company culture is how proud employees are to be part of the organization they belong to! The management of employee satisfaction speaks volumes and contributes to retention, employee engagement and production, as well as overall office morale. Companies must place a strong focus on retention, and tactics should reflect the companyâ&#x20AC;&#x2122;s values and the type of work environment it wishes to create. For example, if teamwork is important, then institute weekly lunches or other teambuilding activities. If continual learning is fundamental, then host lunch and learns or offer tuition reimbursements. If the company wants to build a culture of promoting from within, then sponsor mentorship programs and job shadow initiatives. The ultimate goal is to create an atmosphere where employees collaborate with each other, are challenged to work hard, are accountable to themselves and the team on a daily basis, and enjoy coming to work. Employee recognition should not be overlooked when building a retention strategy. An employeeâ&#x20AC;&#x2122;s perceived value has a positive impact on work ethic. According to a recent Globoforce Workforce survey, only 24 percent of U.S. workers
are satisfied with the level of recognition they receive, yet 69 percent believed they would work harder if their efforts were better recognized! Recognition does not have to be monetary in nature. However, generational differences may play a role in what recognition and reward mean to the workforce. Recognition can be as simple as a mention in the company newsletter. Shortened summer hours, extra paid-days-off or telecommuting opportunities are also great ways to provide incentives that promote work/life balance. Company culture is evolutionary, and there will inevitably be natural variances as an organization changes and grows. The key is to understand what contributes to a successful environment and to weave those characteristics and values into the fabric of the organization.
_______________________________
Dave Coons is Senior Vice President of The Jacobson Group, the nationâ&#x20AC;&#x2122;s leading provider of talent to the insurance industry. He can be reached at (800) 466-1578 or dcoons@jacobsononline.com.
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Sample
cultural fit interview questions ? Describe a time when you disagreed with a superior. How did you handle the situation? ? What do you expect from a potential employer? ? Tell me about an ineffective team situation in which you were involved? How did you address the problems? ? Give me some examples of how you might demonstrate respect for your organization, managers, co-workers? ? Describe a time when you had to effectively assess and work through the politics of a situation in order to get your job done. ? What did you do in your last job to improve your skills and performance? ? Give me an example of a time when you had to make a quick decision with limited information. What was the outcome?
Primary Agent | July 2012
Technology U P DATE
FIVE STEPS TO MAXIMIZE LINKEDIN
STEVE ANDERSON Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/or reduce expenses. He speaks professionally to hundreds of agents each year at National Alliance events and at many state association conventions and technology forums on the future of technology, the social Web and how insurance agencies can establish their internet presence. He has authored many articles that have appeared in virtually every insurance industry publication. He has over 30 years experience in the insurance community. Learn more at steveanderson.com.
LinkedIn (linkedin.com) needs to be a part of every producer's sales toolkit. This social platform provides an easy way to learn about, and reach out to, millions of businesspeople (also called prospects). In addition, all agency staff should create a profile. Unfortunately, many producers, as well as staff, don't take full advantage of the site's capabilities even though most are free. [ 24 ]
On the following pages I'll share my top recommendations — in five steps — for maximizing LinkedIn for networking and, ultimately, making sales.
Your name: Use your “known as” name. My given name is Stephen but I have gone by Steve for many years, so that is what I use in my profile and on my business card.
Step 1: Creating a profile — basic The first step, if you haven't done so already, is to create your LinkedIn profile and make it an effective tool.
Headline: Also known as Title, this area provides you with a great branding opportunity. When another user searches the LinkedIn user database, your name
Primary Agent | July 2012
and headline are the only things they'll see before deciding whether to click on your full profile. Make this statement count. “Commercial Producer” isn't much of a branding statement, but “Specialist in Protecting the Financial Future of Business Owners” provides more focused information. Photo: Make sure you add a photo! Upload any decent-looking, digital head-and-shoulders photo. You don’t need business attire for this shot. Just use a photo that sends the message, “This is a professional person,” meaning (as you may have guessed) last year's beach vacation shots might not be your best pick. Custom URL: Make sure your LinkedIn profile bears your own stamp in the form of a personalized URL, like http://www.linkedin.com/in/ TAAReport, if it is available. You should add this customized URL to your email signature, on your business card and anywhere else you have your information. Summary: Here’s where you can tell your own story. People buy from people, so use this freeform section to show your personality. It’s OK to have fun with your LinkedIn summary. It's where you can speak to the reader (the person viewing your profile) in a human voice. Employment history: It takes only a few seconds to upload your text resume to LinkedIn, and it will save you time creating the Work History section of your profile. You can amplify this field with your proudest accomplishments or particular responsibilities you want readers to
know about. It’s important to include the dates (and employer names) for each past assignment so LinkedIn can match you up with colleagues who have worked alongside you. Education: Including accurate dates in the Education section of your profile will make it easy for the LinkedIn database elves to match you up with classmates who may be on LinkedIn now, waiting for you to reach out and refresh the connection. Contact: The “Contact [Person X] for” section toward the bottom of your profile is another great field because it forces you to think about what you want from LinkedIn and from your networking in general. This is where you get to decide which types of contacts you want and don't want. Which conversations are you willing to have, and which ones are a waste of your time? Step 2: Creating a user profile — advanced Step two will maximize your visibility and networking prowess through your LinkedIn profile. Additional information: Your profile’s Additional information field lets you round out the “Story of You” with the URL for your website and/or blog, your Twitter account, honors and awards you’ve won, and your interests (the books you read, the sports you play or follow, or anything else you want to share). Remember, people buy from people they like. Sharing information about yourself makes you more human and provides additional networking points of contact.
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Specialties: The Specialties section of your LinkedIn profile is another great field. You can use terms like “Commercial Insurance Sales” and “Risk Management,” but you can also talk about your Irish wolfhounds and salsa dancing in this field. Prospective clients and employers want real, live, entangled, interesting people on their teams. Business is personal these days, and your outside-of-work interests (the ones you care to share, anyway) are part of your professional persona. Add sections: A powerful new LinkedIn feature is Add Sections, which lets you amplify your profile with additional information about past jobs, projects, organization memberships and more. Click on the Add Sections link to preview the various enhancements you can make to your profile just by providing a bit more background. Personal information: You can list as little or as much personal information as you want on your profile. It’s your choice. Applications: This is a very powerful feature that allows you to add external information to your profile and have it updated automatically. For example, if you have a WordPress website you can link the LinkedIn WordPress application to your site and have new content added automatically to your profile. There are several applications, and I could write multiple articles about them, but for now I’ll just say check them all out.
TECHNOLOGY UPDATE
Step 3: Building a network — basic Now you need to begin the process of actually building your network. Here are five tips for connecting with the people you already know and are part of your existing networking group. Many of your existing contacts may already have a LinkedIn profile. Connections: Look for the green Add Connections bar on nearly every page of LinkedIn. Use this link to invite people you know to join your firstdegree (people with whom you are directly connected) network. In most cases you’ll need their email addresses. If LinkedIn gives you the opportunity (some invitation channels do, and some inexplicably don’t), change the standard boilerplate invitation language to sound more like your own voice. And you might remind the person you are requesting a connection in the invitation how you know them and/or where you meet them. Be careful of sending invitations to people who aren't expecting them — you could lose your invitation privileges that way. Colleagues: The Colleagues feature lets you quickly see which LinkedIn members have worked with you during your career. That’s incredibly handy because it can be easy to forget people, and you probably don’t have current email addresses for long-ago colleagues. Current clients: At a minimum you should send a request to connect with current clients. If it is a larger organization, then you will want to send a request to connect to every contact at the organization.
Address book: If you have an address book on Gmail, Hotmail, Outlook or another popular email application, you can download your entire contact list into LinkedIn. Don’t panic — LinkedIn won’t send spam; it will just tell you which of these contacts already have a LinkedIn profile. Classmates: Just as the Colleagues feature does, Classmates lets you reconnect with people from your past. Invite people to join your network via the Classmates channel with caution, because this is where LinkedIn invitation spam tends to congregate. As suggested above, a helpful reminder in the body of your invitation can help refresh the memory of classmates you haven't been in touch with for a while.
Join IA&B’s LinkedIn group, accessible from www.iabgroup.com/soc_media, to discuss trends and network with colleagues. Step 4: Building a network — advanced The tips in step four will help you begin to use LinkedIn effectively by showing you how to actively use the site rather than sitting around waiting for people to reach out to you. Try one a day and build up your LinkedIn chops from “novice” to “expert” status in a short period of time. People search: Use the People Search link in the upper right hand corner of nearly every LinkedIn page. Using the quick-search feature may not be as effective as the Advanced People Search. You can search the LinkedIn
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database on every imaginable field, from a person’s name or industry to his or her virtual proximity to you. Searching LinkedIn is a free and easy way to build up your prospect business-intelligence and gather information about them. Companies: LinkedIn’s Companies database is another treasure trove of useful information for insurance producers. When you find a company that interests you, click once to “Follow” that company and receive updates on its hires and other news. Connections: Browse your first-degree connections’ connections (2nd Degree Connections) to find someone you’d like to talk to. Make sure you appeal to the recipient and aren’t just asking a favor. You can make contact with the one-hop-away networker using the “Get Introduced Through” function. Answers: LinkedIn Answers is a feature that lets you ask and answer questions among the massive LinkedIn user community. You should begin to explore using Answers to inquire about questions people have regarding insurance. You should also respond to queries posted by others on insurance related topics. Answering and posting your own LinkedIn questions adds to your understanding of various topics and increases your networking visibility and credibility. Groups: LinkedIn Groups are magnificent idea-sharing and networking tools because they bring together subsets of the overall LinkedIn population, making it easy to converse and view one another’s profiles. Some Groups require approval from the moderator to join.
Primary Agent | July 2012
Updates: Just like other social platforms like Twitter and Facebook, LinkedIn updates keep your network current on what's new in your life and work. Remember, your audience is other business professionals. Your updates should not sell! They should provide good information. Recommendations: LinkedIn recommendations are an essential piece of the online networking-andbranding puzzle, but they require a bit more thought and care. It’s possible to ask people to recommend you on LinkedIn, but I recommend endorsing others first and letting them return the favor for you (LinkedIn prompts them to endorse you once you’ve completed a Recommendation for them). You must have a first-degree connection with someone in order to endorse them. Make sure your endorsements are pithy and specific. The presence of Recommendations on your LinkedIn profile improves your results in database searches ... and LinkedIn endorsements have their own power, especially if they're well-written. Step 5: Claiming your agency page Whether you work in a large multilocation agency with a well-known name or in a small agency on Main Street, a LinkedIn company page is another way to show up on LinkedIn, and it's an opportunity for free advertising that you shouldn’t pass up. To get started, you must have a LinkedIn account. Don’t worry about upgrading to a paid account at this point; a free account is all you need to start a company page, or even to do most things an agency should do on this social platform.
Choose a password that you’re comfortable handing out to employees or contractors if they maintain your company page, or change it if you already have a profile. If there are more than two agency employees who have listed the agency in their profile, LinkedIn will automatically create a basic page. Search for the agency name in “Companies.” Once you are on the agency page you can click the “Admin Tools” button on the right side of the page to edit the information. In the edit mode you will be able to upload your logo, add a description of the agency, your blog’s RSS feed and, most important, your company specialties. Cutting and pasting your entire “About Us” section from your website isn't recommended if it’s wordy. On LinkedIn, you should whittle the description down to one paragraph so it will be easy to read. To post jobs in the Careers section of your agency page, you must have a paid LinkedIn subscription, and then pay for a Gold or Silver career page. Paid subscription fees start at $26 a month. This feature is likely of benefit only to a larger agency; a smaller agency can get by with listing open jobs on its own site and posting a status update to its LinkedIn page when a new position becomes available. Next, you can add products and services to your agency page under the “Products & Services” tab, but you should add only major lines of business your agency writes. You can send visitors to your website for more details. However, don’t ignore this tab entirely (as many companies on LinkedIn do), since it helps prospective clients find and understand your agency. [ 27 ]
LinkedIn also lets you add videos, name an agency contact, and insert lots of other details. For example, you could call your service “Producer in Nashville,” and assign the responsible salesperson. The contact needs to have a LinkedIn profile to participate, so encourage your employees to sign up if they haven't already. Once you’ve entered a product or service, “Recommend” and “Share” links appear beneath it. Ask loyal customers on LinkedIn if they won’t mind making a recommendation for your agency, which will appear along with a link to their profile in the right-hand sidebar of your product or services page. Now that you have edited your agency page, ask employees to go back and edit their own profiles so that the new agency page appears. They can do so by clicking “Edit Profile” and then clicking “Edit” beside their position at your agency; once they start typing the name of the company, they can choose the agency page. The benefit for you is that visitors to their profile will be able to click over to your agency’s page. Finally, you can and should post status updates on your agency page. This is in addition to the update you post on your own LinkedIn profile page. Only designated administrators can post on an agency page from within LinkedIn. Wishing you much success using LinkedIn! Reprinted with permission of Steve Anderson. Subscribe to Steve’s weekly TechTips at http://www.SteveAnderson.com.
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“Humble” beginnings Many in the industry are quick to quip that they landed in insurance by accident — but stayed by choice. The same can’t be said for these celebrities, who left the business as soon as the opportunity presented itself.
care of the rest.
Mark Burnett The producer of “Survivor” and creator of “The Apprentice” worked in an insurance firm for two years before leaving to sell T-shirts (and, later, become a TV mogul).
Ad Index
Tom Clancy The novelist owned the O.F. Bowen Agency and later bought his wife’s grandmother’s insurance agency before turning his focus to military thriller novels in the ‘80s.
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Atlantic Specialty Lines Inc. . . . . . . . . . . . . . . . .7 Brokers Surplus Agency . . . . . . . . . . . . . .17, IBC Guard Insurance Group . . . . . . . . . . . . . . . . .IBC Harford Mutual Insurance Co . . . . . . . . . . . . . .15 IA&B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IBC IA&B Partners Program . . . . . . . . . . . . . . . . . . .19 Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC Preferred Property Program . . . . . . . . . . . . . .IFC PennPRIME Insurance . . . . . . . . . . . . . . . . . . .IFC
[ 28 ]
Colonel Sanders The founder of Kentucky Fried Chicken worked as an insurance salesman — as well as a “steamboat pilot, railroad fireman and farmer” — before focusing on fried chicken sales. Anne Rice The author of “Interview with the Vampire” spent her prenovelist days as an insurance claims processor in San Francisco. Bruce Jenner The decathlete sold insurance to support himself while training for the 1976 Summer Olympics. Source: PropertyCasualty360.com
----------------------------------------------------------------———————------The Last & Least column is dedicated to the industry’s oddities — from creative claims and kooky coverages, to (tasteful) jokes and strange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.
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